Why Is My Accountant Asking for My ID and Information About My Business?

From 1 July 2026, accountants (along with lawyers, conveyancers and several other professions) became regulated under Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime when they provide certain “designated services.” This can require your accountant to verify who they're dealing with, understand who actually owns or controls a business, understand the purpose of the relationship or transaction, and assess money-laundering and terrorism-financing risk — as part of their own regulatory obligations, not because anything specific about you has raised concern.

These checks form part of an accountant's regulatory obligations where the AML/CTF requirements apply. The information and verification required can vary depending on the designated service being provided, the customer, and the risk the accountant assesses — it isn't an identical, fixed process applied the same way to every client.

A significant part of this process — called beneficial ownership identification — exists because complex company and trust structures can be used to obscure who actually benefits from or directs a business, which is exactly the kind of structure that can be misused to hide the source of funds. Your accountant tracing this isn't about doubting your business — it's a check they're now required to run for every client, so that the small number of genuinely problematic cases can be identified against a consistent baseline.

• It's more thorough than a simple ID check. Verifying identity now typically involves cross-checking documents against independent sources, not just sighting a licence.

• It applies even to long-standing clients. Unless your accountant completed equivalent checks on you before the reforms took effect, these steps generally need to be done now, regardless of how long you've worked together.

• It may need periodic refreshing. If your business structure, ownership, or risk profile changes, your accountant may need to update their records — this isn't a one-off exercise.

• It comes with real questions about purpose. Being asked why a transaction is happening, or what it's for, is now a standard part of the process for certain services — not a sign your accountant suspects something.

• It can look different for different clients. The regime is risk-based — a simple, low-risk engagement may involve more straightforward checks, while a higher-risk situation (a complex structure, an unusual transaction, an overseas element) can require more detailed, enhanced checks. There's no single fixed process that applies identically to everyone.

• It doesn't mean you're personally under suspicion — these checks are a standard part of an accountant's obligations wherever the AML/CTF requirements apply, applied on a risk basis rather than because of anything specific to you.

• It doesn't mean your accountant thinks something is wrong with your business.

• It doesn't mean the relationship or service has fundamentally changed — it means a legal compliance layer now sits around it, sized to the service being provided and the risk involved.

• It doesn't mean your information is being shared inappropriately — it's collected, verified and retained under specific legal obligations, with reporting to AUSTRAC required only in defined circumstances.

• Have standard identification ready — a driver's licence or passport, plus a secondary document if requested.

• For a company, be ready to explain the ownership and control structure clearly, including anyone holding 25% or more.

• For a trust, have the trust deed accessible, along with clarity on who the trustees, settlors and appointors are.

• Expect this to be asked periodically, not just once — particularly if your business structure changes.

• If something about the request is unclear, ask your accountant to explain which specific requirement it relates to — a properly compliant professional will be able to explain it clearly.

• Do I understand this is a legal obligation on my accountant, not a judgement about my business?

• Do I have standard identification and ownership documentation ready for my business structure?

• If asked about the purpose of a transaction, can I explain it clearly and simply?

• Have I asked my accountant to explain any part of the process I don't understand?

• you're unsure what documentation your specific business structure will need to provide;

• your ownership or control structure is complex and you want help understanding what will be required;

• you're planning a transaction — like a property purchase or business sale — and want to understand how these requirements will apply; or

• you have concerns about how your information is being collected, used or retained, and want them properly addressed.

→ Australia's New AML/CTF Rules — What Do Business Owners Need to Know?

→ What Accounting Records Do I Need to Keep — and for How Long?

→ What Information Should I Give My Accountant — and How Often?

SKC Accounting | Knowledge Centre | Knowledge Guide 045

Last reviewed: August 2026

General information only. This guide does not take into account your individual circumstances and is not a substitute for professional accounting, taxation, legal or financial advice.